E-Governance in Nepal: Policies, Institutions, and the Road Ahead

E-governance in Nepal has emerged as a critical tool to modernize public services, improve transparency, and strengthen citizen-state engagement. While the country has made notable progress, challenges related to infrastructure, capacity, and citizen outreach remain barriers to achieving the full potential of digital governance.

1. Policies: Building the Foundation

Nepal’s e-governance journey is underpinned by key policy frameworks designed to foster digital transformation. The IT Policy 2015 and the Digital Nepal Framework 2019 lay the groundwork for integrating technology into governance, emphasizing connectivity, economic growth, and service accessibility.

The Digital Nepal Framework identifies eight sectors, including agriculture, health, education, and tourism, as priority areas for transformation. Complementing this is the Electronic Transactions Act 2008, which provides a legal framework for online transactions and digital signatures. More recently, the Cybersecurity Policy aims to safeguard government and citizen data, ensuring trust in digital services.

While these policies reflect ambition, gaps persist. Policymaking must become more informed through evidence-based research and citizen consultations. Moreover, harmonization between national and local policies under Nepal’s federal system is crucial to prevent overlaps and inefficiencies.

2. Institutions: Driving Implementation

Several institutions are pivotal to Nepal's e-governance initiatives. The Ministry of Communication and Information Technology (MoCIT) leads the digital transformation agenda. The recently established E-Governance Commission plays a vital role in policy coordination, overseeing implementation, and ensuring digital inclusivity.

Additionally, the government operates platforms like the Nepal National Single Window for trade facilitation and the Integrated Tax System for seamless tax management. However, many institutions face resource constraints and require strengthened technical and operational capacities to deliver on their mandates effectively.

International development partners, including the World Bank, KOICA, and UNDP, have provided vital support. These partnerships have enabled projects such as the expansion of broadband infrastructure in rural areas and the establishment of digital service platforms. However, aligning donor-driven projects with national priorities remains a challenge.

3. Infrastructure: Bridging the Digital Divide

Infrastructure challenges significantly hinder Nepal's progress in e-governance and digital transformation. While urban centers benefit from relatively stable internet connectivity, rural and remote regions face limited access, inadequate coverage, and slow speeds. The lack of digital infrastructure in these areas perpetuates the digital divide, restricting equitable access to online government services. Programs like the Digital Nepal Framework aim to address these disparities through broadband expansion and improved mobile penetration, but progress remains uneven. Ensuring reliable power supply is crucial to supporting digital service delivery and maintaining infrastructure. To bridge these gaps, Nepal must prioritize investment in renewable energy, resilient infrastructure, and connectivity development, particularly in underserved regions. Public-private partnerships (PPPs) can play a pivotal role in driving innovative solutions and expanding digital access to even the most hard-to-reach communities.

4. Capacity: Equipping Institutions and Individuals

The human resource gap is one of the biggest challenges in Nepal’s e-governance landscape. Many government institutions lack the technical expertise to implement and manage digital systems. This shortage is particularly acute at the local government level, where capacity constraints hinder the effective use of ICT tools.

Training and skill-building programs are essential. Partnerships with academic institutions, private tech firms, and international organizations can provide the necessary expertise. Additionally, retaining skilled personnel within government institutions requires creating competitive work environments and opportunities for career growth.

5. Services and Citizen Engagement

At the heart of e-governance is the ability to deliver accessible and efficient services to citizens. Nepal has developed several government digital apps to enhance public service delivery and promote e-governance. Key apps include Nagarik App for accessing government services like citizenship, PAN, and passports, Hello Sarkar for lodging complaints, and the IRD Taxpayer Portal for tax-related services. Transportation apps like Yatayat and Mero Driving License streamline vehicle tax payments and license renewals, while Hamro Swasthya and Nepal Blood Bank App focus on health services. Farmers benefit from Krishi Guru and Mero Kisan for agricultural information, and utility apps like NEA App and Khanepani simplify bill payments. Other notable apps include the Land Revenue Office App for property services, SEE Results App for education, and TIMS App for trekking permits, showcasing Nepal’s commitment to digital transformation. However, many citizens, particularly in rural areas, are unaware of or unable to use these services due to digital illiteracy or lack of access to devices.

Engaging citizens through awareness campaigns, simplifying user interfaces, and offering multilingual platforms can significantly improve uptake. Offline support mechanisms, such as help desks and community outreach programs, can complement digital services to reach the digitally excluded population.

6. Moving Forward

For Nepal to realize its e-governance vision, a holistic approach is needed:

• Strengthening Policies: Introduce evidence-based policies, harmonize regulations across sectors, and conduct periodic reviews to ensure alignment with emerging technologies and citizen needs.
• Investing in Infrastructure: Expand broadband coverage, integrate renewable energy solutions, and develop reliable IT infrastructure to support service delivery.
• Building Capacity: Focus on skill development for government staff, particularly at the local level, and foster collaborations with private and academic institutions.
• Enhancing Services: Prioritize user-friendly designs, multilingual platforms, and offline support to ensure inclusivity and accessibility.

Nepal’s e-governance efforts have laid a strong foundation. By addressing these challenges, the country can create a digital ecosystem that fosters transparency, empowers citizens, and accelerates its development goals.

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Binod Upadhyaya

Scott Wilson Nepal Pvt. Ltd.

89 Krishna Dhara Marg Maharajgunj, Kathmandu, Nepal